Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Pumpkin Patch cuts annual earnings forecast; shares fall

Pumpkin Patch cuts annual earnings forecast; shares fall

By Tina Morrison

May. 23 (BusinessDesk) - Pumpkin Patch, the second-worst performing stock on New Zealand's All Ordinaries Index the past year, signalled full-year earnings may plummet on sluggish demand and price discounting in its main New Zealand and Australian markets.

After-tax earnings before reorganisation costs may be between $1 million and $3 million in the year ending July 31, down from the company's previous guidance that earnings would be unchanged from the $8.5 million a year earlier, the Auckland-based children's clothing retailer said in a statement. It didn't detail the likely reorganisation costs. The guidance is subject to any material change to trading conditions, exchange rates or international partners' delivery schedules across June and July.

The company's shares dropped 2 percent to 50 cents, and have declined 56 percent the past year, the worst-performer after fellow clothing retailer Postie Plus Group.

"Trading conditions in the company’s key Australian and New Zealand retail markets have remained at levels similar to those experienced across the first-half period," Pumpkin Patch said. "The trading environment is volatile and continues to be dominated by high levels of promotional activity and lacklustre consumer demand especially in Australia where there is little sign of any meaningful improvement in the near term."

Pumpkin Patch expects to provide an update on its strategic review of the company's underperformance and opportunities to boost earnings by the end of June.

"While key long term operational and brand related strategies have not yet been finalised the review to date has identified a range of system and process investment requirements that will generate improvements in underlying earnings and working capital and debt requirements," the company said.

The stock is rated a 'hold' according to the average recommendation of analysts compiled by Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news